With Ammu

Unlocking Business Growth: The Triple Benefits of EMI Schemes
At Ammu we are dedicated to helping Glasgow businesses achieve their potential. That’s why we are proud to be part of Glasgow City Council’s Business Growth Programme. This programme helps Glasgow SMEs grow by connecting them with expert consultancy support.
Through the programme we worked with a tech company based in Glasgow seeking a solution to support ongoing growth. It became clear that the highly innovative tech company’s success was rooted in their highly skilled staff. Our solution was the implementation of an Enterprise Management Incentive (EMI) scheme to retain its highly skilled team.
Why EMI?
Over 14,000 UK companies use this scheme as it aligns employee interests with company success.
EMI schemes offer tax benefits to senior staff, encouraging long-term commitment by allowing them to buy shares at a set price. These can be exercised later, depending on conditions like service length or company sale.
UK companies with fewer than 250 employees and assets under £30 million may qualify for the EMI scheme, provided they are not in sectors like banking, property development, shipbuilding, farming, or legal services.
Key Advantages of EMI Scheme
Properly valuing the company is crucial for maximizing the benefits. The EMI scheme offers three main advantages:
- Employee Benefits: Employees benefit from lower capital gains tax rates of 10% under Business Asset Disposal Relief when selling their shares, compared to the standard 20%. There is also no immediate tax on receiving shares if the exercise price matches the market value.
- Company Benefits: Companies get Corporation Tax relief based on the market value of the shares when exercised.
- Cultural Impact: The EMI scheme promotes ownership and commitment among senior employees, aiding company growth and appeal to buyers.
By using the EMI scheme, Ammu helped the company retain key employees and boosted its growth and competitiveness.
Get in touch with emily@ammu.uk for expert tax advice and help to boost your business growth and success.

Ammu Chartered Accountants
10 Newton Terrace
G3 7PJ
0141 290 0262
ammu.uk
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